Proactive Fiscal Policy to Continue: Minister

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Last updated at: (Beijing Time) Wednesday, March 06, 2002

Proactive Fiscal Policy to Continue: Minister

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China will continue to adhere to the principle for boosting domestic demand, follow a proactive fiscal policy, appropriately increase expenditures and strive to promote sustained, rapid and sound development of the national economy in 2002.

Finance Minister Xiang Huaicheng made the remark Wednesday, while delivering the Report on the Implementation of the Central and Local Budgets for 2001 and on the Draft Central and Local Budgets for 2002, at the current session of the National People's Congress.

Xiang said that to step up construction of infrastructure facilities and boost fixed asset investment, the government plans to issue 150 billion yuan of long-term treasury bonds, 125 billion yuan of which will be listed in the central budget and 25 billion yuan of which will be issued by the central government in the name of local authorities.

The funds will be mainly used for treasury bond-backed projects under construction, development projects in the western region, technological transformation of key enterprises, projects to divert water from the south to the north, and protect the water resources of Beijing and Tianjin, rural infrastructure and infrastructure facilities needed by public security and procuratorial organs, people's courts and judicial departments and by institutions of higher learning which increase enrollment.

Governments at all levels and relevant government departments will strengthen management and supervision of funds from treasury bonds and conscientiously choose feasible projects, Xiang said. The public bidding system should be strictly implemented for projects financed by treasury bonds.

More construction funds from treasury bonds will be brought under a system of centralized payments from the treasury to resolutely prevent ineffective investment, redundant construction and inappropriately high standard construction, to ensure that the funds are not retained, misappropriated, lost and wasted and to improve the performance of such funds.

In addition, the government will integrate implementation of a proactive fiscal policy with efforts to readjust the economic structure, deepen economic restructuring, increase employment, improve people's living standards and maintain sustainable economic development.

The minister stressed that the government will fully utilize the combined results of issuance of additional treasury bonds, the tax policy, the policy on income distribution and the fiscal discount policy to boost and foster domestic demand through various channels.

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